A survey of 456 further education (FE) colleges in England and Wales identified the FE sector's activities in providing effective training and development to smaller and medium-sized enterprises (SMEs). Of 120 colleges that responded, 87.5 percent provided direct training to SMEs; 79.2 percent were developing or acquiring teaching or training materials for SMEs; 76.7 percent had SME partnership arrangements; 63 percent were collaborating with others in provision for SMEs; and 25.8 percent had supply chain involvement. Colleges outlined many elements of good practice, along with a constructive acceptance of difficulties in instigating good relationships with SMEs and in building a regular stream of income from the sector's provision to SMEs. The FE sector continued to invest in building collaborative arrangements and partnerships that increased the effectiveness of its provision to local employers and employees. Colleges acknowledged that the SME sector was an essential provider of local jobs. Other findings were that 94.2 percent of colleges could analyze needs of the market and potential customers; 84.2 percent could drive the demand for learning through mass marketing and promotion; and 86.7 percent could ensure availability of and connect customers to high-quality learning programs. (Appendixes include detailed responses to survey questions and statistical response to survey.) (YLB)